---
schema_version: "secwatch.filing_event.v1"
accession: "0001493152-25-000238"
form_type: "8-K"
ticker: "KUST"
cik: "0001342958"
company_name: "KUSTOM ENTERTAINMENT, INC."
filed_at: "2025-01-03T23:59:59+00:00"
generated_at: "2026-05-28T12:58:12.804838+00:00"
event_type: "regulatory"
sentiment: "negative"
materiality_score: 0.75
calibrated_materiality_score: 0.75
confidence: "high"
source: SEC EDGAR
---

# Digital Ally faces Nasdaq delisting over negative equity of $2.45M

## Summary
- On Jan 2, 2025, Nasdaq notified Digital Ally of non-compliance with Listing Rule 5550(b)(1) due to stockholders' equity of ($2,448,310) as of Sept 30, 2024, below $2.5M minimum.
- Company also failed alternative compliance standards: market value of listed securities or net income from continuing operations.
- Company has 45 days to submit a compliance plan; Nasdaq may grant up to 180-day extension if plan accepted.
- No immediate effect on trading under symbol DGLY; company evaluating options to regain compliance.

## SEC filing metadata
- accession: 0001493152-25-000238
- form_type: 8-K
- ticker: KUST
- cik: 0001342958
- company_name: KUSTOM ENTERTAINMENT, INC.
- filed_at: 2025-01-03T23:59:59+00:00
- event_type: regulatory
- sentiment: negative
- materiality_score: 0.75
- calibrated_materiality_score: 0.75
- confidence: high
- sec_items: 3.01
- EDGAR index: https://www.sec.gov/Archives/edgar/data/1342958/000149315225000238/0001493152-25-000238-index.htm
- EDGAR primary document: https://www.sec.gov/Archives/edgar/data/1342958/000149315225000238/form8-k.htm

## Machine-readable alternates
- HTML: https://secwatch.observer/filing/0001493152-25-000238
- JSON: https://secwatch.observer/filing/0001493152-25-000238.json
- Plain text: https://secwatch.observer/filing/0001493152-25-000238.txt

## Key facts
- Listing & Compliance Notices
  KUSTOM ENTERTAINMENT, INC. received a nasdaq noncompliance notice notice regarding late filing (rules 5250(c)(1)).
  - Exchange: nasdaq
  - Notice: noncompliance notice
  - Deficiency: late filing
  - Rules: 5250(c)(1)
  source text: November 27, 2024, Digital Ally, Inc. (the “Company”) received a notice from the Nasdaq Stock Market LLC (“Nasdaq”), which indicated that, as a result of the Company’s delay in filing its Quarterly Report on Form 10-Q fo
  evidence_url: https://www.sec.gov/Archives/edgar/data/1342958/000149315225000238/0001493152-25-000238-index.htm
- Listing & Compliance Notices
  KUSTOM ENTERTAINMENT, INC. received a nasdaq noncompliance notice notice regarding stockholders equity (rules 5550(b)(1)).
  - Exchange: nasdaq
  - Notice: noncompliance notice
  - Deficiency: stockholders equity
  - Rules: 5550(b)(1)
  source text: January 2, 2025, Nasdaq delivered a written notification notifying the Company that it had regained compliance with the Quarterly Report Requirement. Minimum Stockholders’ Equity Standard On January 2, 2025, the Company
  evidence_url: https://www.sec.gov/Archives/edgar/data/1342958/000149315225000238/0001493152-25-000238-index.htm

This AI-assisted summary is a reading aid. Review the linked SEC EDGAR filing before relying on any specific claim.